Bankruptcy Exemptions in Ontario

Bankruptcy Exemptions in Ontario: What do you get to keep

Under Ontario law, certain things are exempt from seizure by a bankruptcy trustee in an Ontario bankruptcy. The rules regulating bankruptcy exemptions in Ontario say that in an event of a personal bankruptcy you are permitted to keep the following:

$5,650 worth of personal possessions (clothing, jewelry, sports equipment, etc.);
$5,650 worth of motor vehicles (cars, trucks, etc.);
$11,300 worth of furnishings;
$11,300 worth of tools of the trade (equipment that you use to earn a living);
Most pension plans, certain types of life insurance policies, and certain RRSPs.

At Hoyes, Michalos & Associates Inc., prior to filing your bankruptcy we will ask you to make a list of all items in your house, and to assign a fair value to each item. We define fair value as the amount you would get if you were to sell that item at a garage sale. Therefore, even though you may have paid $300 for your television, if it is a few years old it is probably not worth more than $50 or $100 at a garage sale.

Please note that the exemption amounts for Ontario bankruptcy have changed a number of times over the last few years. We strongly recommend that you contact a trustee in one of our offices for a free consultation, to review your personal situation and determine what you can keep if you file for bankruptcy in Ontario.